Colombo: Parliament has passed the interim budget for Sri Lanka, which is reeling under a severe economic crisis. Sri Lankan President Ranil Wickremesinghe presented the budget. In the 225-member assembly, 115 members voted in favor while the main opposition SJB abstained from the vote. Only five members voted against the interim budget.
Three legislators from the Janata Vimukti Peramuna (JVP) and two MPs from the All Ceylon Tamil Congress voted against the interim budget. The President presented the Interim Budget after Sri Lanka received US$ 2.9 billion in financial assistance from the IMF to overcome the economic crisis. It is said in the budget that there will be tax reform to help the weaker sections.
The Interim Budget has several tax reforms related to Income Tax, Value Added Tax (VAT), Telecommunication Levy, and Betting and Gaming Levy. From September 1 this year, the VAT rate will be increased from the current 12 percent to 15 percent. VAT was raised from 8 percent to 12 percent last June. Tax reform is brought in to increase revenue for the government. Ranil Wickramasinghe said that many schemes will be implemented to help economically backward people.
